Goldman Sachs, an American multinational investment bank and financial services company, reported on Tuesday regarding the current situation of Bitcoin and Ether impacted by the SEC, citing on-chin data. Whatsoever, as cryptocurrency continues to achieve strong performance, bitcoin miners’ inventory sales sold a record amount of their stock.
According to the report, the supply of bitcoin, which marked the largest market capitalization, dropped by 4%, reaching an average level of December 2022, the lowest level since November 2020, right before the bull market in 2021. Ether supply dropped 5.8% to levels not seen since May 2018. This trend was justified by numerous things, or at least that is what the Goldman Sachs bank said.
It was further stated that “major centralized spot exchanges are facing regulatory headwinds, which is making investors nervous. Cyber hacks and theft continue to be a concern across the crypto markets, highlighting asset holders’ preference for self-custody, in line with the popular saying “not your keys, not your coins,” meaning that what stands behind the increasingly uneasy feeling of investors is the result of regulatory challenges and security risks, which has led to an increase in the preference for self-custody of cryptocurrency assets. Consequently, based on the report, for Ether, the ability to withdraw staked ether has made investors prefer to stake ether instead of passively holding it on exchanges.
For Goldman, June was considered a record month in terms of sales of inventory by Bitcoin miners, those who took the very advantage of the strong performance of the cryptocurrency. TradingView, which is known for its special market analysis, reported data that shows how, from May to June, the total amount of BTC that miners sent to exchanges almost doubled, to $99 million. Furthermore, the price of Bitcoin went up by almost 12%.
Lastly, the report provided a brief analysis of Bitcoin activity and Ethereum activity. Both of them monthly showed a rebound, gaining 15.5% and 37.5%, respectively, after transaction fees returned to normal in June following the network congestion seen in May. Goldman Sachs observed the situation monthly and, based on it, came up with the results of a genuine decline of 65.1% in the average daily amount of Ether and a 63.3% decline in the average daily amount of fees. In addition, there was additional new activity on the blockchain during the previous month. According to the findings of the report, the daily average number of new bitcoin and ether addresses increased by 9.8% and 48.2%, respectively, when compared to the same period one month earlier.